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DAWN WIRE SERVICE
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Week Ending : 10 April 1999 Issue : 05/15
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
Pakistani Community on the Internet.
Extracts, not exceeding 50 lines, can be used provided that this
entire header is included at the beginning of each extract.
We encourage comments & suggestions. We can be reached at:
e-mail dws-owner@dawn.com
WWW http://dawn.com/
fax +92(21) 568-3188 & 568-3801
mail DAWN Group of Newspapers
Haroon House, Karachi 74200, Pakistan
Please send all Editorials and Letters to the Editor at
letters@dawn.com
(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
+ Pakistan for stronger ties with China, says Nawaz
+ Qatar hopes Islamabad, Delhi will end disputes
+ Pakistan asked to sign CTBT, solve IPPs issue
+ Pakistan, Russia Nuclear talks conclude
+ World Bank to provide $400m aid to Punjab
+ Talks on power sale to India deadlocked
+ Group visa for Indian visits soon: envoy
+ Sindh to introduce new farm tax system
+ Govt starts issuing 100-page passports
+ Case based on surmises: Benazir's counsel
+ Draft law prepared to give legal cover to Khidmat bodies
---------------------------------
BUSINESS & ECONOMY
+ Temporary reduction in SLR expected
+ New trade agreement with EC in May: Leon
+ Rs700m ST imposed on 18,000 units
+ Pakistan to achieve only 3% GDP growth
+ Govt to offload 30pc of its shares in oil & gas sector
+ Conditional raise in Wapda tariff notified
+ Jewellers with turnover below Rs4m exempted
+ Only 41% of ADP funds utilized in 9 months
+ Premiums on forward sale of $ fall sharply
+ Share index loses 13 points on heavy selling
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EDITORIALS & FEATURES
+ Wise counsel Ardeshir Cowasjee
+ Down the Khyber Irfan Husain
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SPORTS
+ Pakistan thrash India, lift trophy
+ Invincible Pakistan make India an easy prey
+ Pakistan thrash England by 90 runs in Champions Cup
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NATIONAL NEWS
990410
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Pakistan for stronger ties with China, says Nawaz
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ISLAMABAD, April 9: Pakistan on Friday reaffirmed abiding
friendship with its strongest ally China and said it looked forward
to a "strategic partnership" for the 21st century.
"China has always stood by us," said Prime Minister Nawaz Sharif,
adding that its support had been invaluable in "critical times."
Visiting parliamentary chief Li Peng, in return, told Sharif that
China saw friendship with Pakistan as a "permanent feature" of its
foreign policy.
Sharif, speaking at a lunch for China's number two leader, also
expressed strong support for Chinese efforts for the establishment
of multi-polar world to ease tension, officials said.
A multi-polar world would contribute further to "relaxation in
global tension and promotion of peace and development," he said.
Sharif also emphasized the need for "a new just and equitable
international economic order and reform of the international
financial system."
Sharif expressed gratitude to the Chinese leadership for its
"understanding and sensitivity" over Pakistan's security concerns.
He reiterated that its nuclear tests last May, in response to
Indian detonations, restored the strategic balance in South Asia.
He underscored the urgent need for a just and final settlement of
the Kashmir dispute between India and Pakistan on the basis of the
UN resolutions calling for a plebiscite.
Li earlier held talks with Sharif lasting more than an hour.
Officials said they covered economic, political and regional and
international issues and matters relating to peace and regional
security.
At the talks Li expressed appreciation for Pakistan's support for
Chinese positions on human rights, Tibet and Taiwan, officials
said.
He said relations would be taken to a new higher level and the two
countries would develop a comprehensive partnership for cooperation
in the 21st century.
Earlier the two countries signed an agreement under which China as
a gesture of goodwill would provide grant aid to Pakistan,
officials said. They gave no details.
Li, chairman of the National People's Congress, arrived on Thursday
for a five-day visit that officials said forms part of high-level
exchanges between Pakistan and China.
China has provided Pakistan with a 300 megawatt nuclear power plant
and its collaboration has helped it make Super-7 fighter aircraft
and tanks.
China has also expressed support for Islamabad's nuclear and
missile programme but denied western reports of practical help.
China will take "all round cooperation to a new level," Li said in
a speech at a dinner on Thursday hosted by National Assembly
Speaker Elahi Bakhsh Soomro.-AFP
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990407
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Qatar hopes Islamabad, Delhi will end disputes
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ISLAMABAD, April 6: Pakistan and Qatar on Tuesday agreed that
establishment of peace and security in the region required non-use
of force and peaceful settlement of disputes.
According to a joint communique issued at the end of two-day visit
of Amir of Qatar Sheikh Hamad Bin Khalifa Al-Thani, Prime Minister
Nawaz Sharif briefed the Amir in regard to the resumed Pakistan-
India dialogue and efforts made by Pakistan for the resolution of
all outstanding issues between the two countries including the
Jammu and Kashmir dispute.
The Amir while reiterating the well-known position of the
government of Qatar on a peaceful settlement of the Jammu and
Kashmir issue, welcomed the Lahore Declaration and expressed the
hope for early realization of the commitments made by Pakistan and
India towards settlement of all outstanding issues between the two
countries.
The two sides also noted that progress and prosperity of the region
required a stable and peaceful environment in South Asia.
Both sides reaffirmed their full support for earlier restoration of
peace in Afghanistan on the basis of the preservation of its
independence, sovereignty and territorial integrity.
The talks between the Amir and the prime minister encompassed
matters relating to bilateral cooperation in various spheres and a
review of the regional situation, with particular reference to
South Asia and the Middle East, and the international developments
at large.
While reviewing the bilateral relations, the Amir and the Prime
Minister reiterated their resolve to intensify economic and
technical cooperation commensurate with the level and quality of
their political relations.
They agreed to reinforce the Joint Ministerial Commission as an
umbrella for carrying forward the agenda for economic cooperation,
especially to promote trade and investments.
The Amir briefed the prime minister on the progress made by Qatar
in various spheres. The prime minister while lauding the all round
progress, praised the Amir's enlightened leadership and the process
set in motion by him to groom the Qatari institutions for greater
service to the people, including the democratic process.
The Prime Minister while noting the upcoming role of the State of
Qatar as the Chair of the next Islamic Summit, expressed the
confidence that the Amir would successfully steer the agenda of the
Ummah at the beginning of new century.
The two leaders while reviewing the Middle East situation,
reiterated their shared view that path to peace in the region lies
through faithful implementation of all agreements and in the
Israeli withdrawal from all occupied Arab lands including Golan
Heights, South Lebanon and the occupied Palestinian territory.
They also reaffirmed their support for the Palestinian right to
establish the Palestinian State with Jerusalem as its capital.
While reviewing the situation in Kosovo, the two leaders expressed
grave concern over the rapidly escalating atrocities and repression
against the defenceless Kosovar Muslims by the Serbian forces and
called upon international community to spare no efforts in stopping
the systematic genocide and displacement of the Kosovars from their
hearth and homes.
In this regard, they called upon the United Nations to play its due
role to bring to an end the enormous humanitarian catastrophe
created by Serb intransigence and brutalities. Both leaders agreed
that the OIC, should initiate consultations to deal with the
situation.
They expressed sympathy and solidarity with the people of Kosovo
while underlining the importance of complying with the Rambouillet
Peace Accord.
The Amir invited the prime minister to pay an official visit to
Qatar which the latter accepted with pleasure.-APP
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990408
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Pakistan asked to sign CTBT, solve IPPs issue
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Ihtashamul Haque
ISLAMABAD, April 7: The Pakistan Development Forum envoys have
urged the government to resolve the Independent Power Producers
issue, and sign Comprehensive Test Ban Treaty before September this
year.
Informed sources told Dawn that the envoys, during a briefing by
Finance Minister Ishaq Dar here on Wednesday about Pakistan's
funding requirements during 1999-2000, said that the delay in the
resolution of the IPPs issue was causing problems for attracting
foreign investment in the country.
The meeting with the envoys will set the pace for having further
negotiations with the PDF, previously known as aid-to-Pakistan
consortium, in Paris on April 22 and 23 to seek $2.6 billion
assistance including $2.2 billion from the Forum.
The envoys of the US, Japan, the Netherlands and Canada were of the
view that the government should take into confidence the
representatives of the IPPs to have an early solution of the
problem.
Sources said that the finance minister informed the envoys that an
independent committee, headed by Sikandar Khan of Millat Tractors,
was trying to resolve the issue. Dar regretted that the delay in
submitting the report by the committee, which was due in December
last, had delayed the resolution of the issue.
However, he assured that the issue would soon be resolved.
In this regard the minister also referred to the restructuring of
Wapda and said that the IPPs issue could not be resolved in
isolation and that the authority's interest would have to be kept
in mind.
Sources said that the envoys of the US, UK, Japan and Canada also
raised the issue of early signing of CTBT by Pakistan. They assured
of their all support in case Pakistan opted to not only adhere to
CTBT but sign it ahead of India before September this year.
They said that Dar said Pakistan would not sign the treaty unless
the atmosphere of coercion and pressure was removed. He said it
would be good if the international community lifted the remaining
sanctions so that Islamabad could take an early decision over the
issue. When reminded by one of the PDF envoys that it was not a
question of pressure and that the government should keep in mind
the human aspect of the CTBT, Dar said that the government had
already announced that it would not at all allow the export of
nuclear technology to a third country and that the West should
understand the practical difficulties of Pakistan in early signing
of the treaty.
Dar also defended the initiation of yellow cab scheme and told the
US envoy that it was started in the interest of the people. He
contradicted reports that money spent on the scheme had eventually
gone waste. He said a number of families were provided jobs through
this scheme.
Responding to a question the minister said that the levy of
agriculture tax was the responsibility of the provincial
governments. He, however, assured that the government was trying to
bring in the tax net all those who had a taxable income including
the landlords.
Talking about the future economic scenario of the country, Dar said
that the government had projected a GDP growth rate of 5.3 per cent
for 1999-2000 against the expected 4.1 per cent of the current
financial year. He said that the proposed 5.5 per cent agricultural
growth rate would help achieve 5.3 per cent GDP growth in the next
financial year.
He said that since the international financial institutions had
expressed their confidence in the policies of the government,
Pakistan would soon be in a position to remove its various
problems. He said that the government had provided lot of
incentives for foreign investment in all the major fields.
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990410
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Pakistan, Russia Nuclear talks conclude
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ISLAMABAD, April 9: Pakistan and Russia on Friday concluded their
two-day talks on nuclear-related issues, including the
Comprehensive Test Ban Treaty (CTBT), officials said.
The two sides exchanged views on the security situation as well as
the nuclear non-proliferation and disarmament issues, they said.
The Russian side, led by GV Berdennkov, director of Russia's
Disarmament and Security Department, held wide ranging talks at the
foreign office and at the defence ministry.
"The discussion at the Foreign Office focussed on Pakistan's
dialogue with the United States and India as well as our position
on nuclear-related issues including the CTBT," sources said.
The Russian delegation gave a detailed briefing about Moscow's
approach with regard to the Strategic Arms Reduction Talks (START)
and the Anti-ballistic missile (ABM) treaty.
The Pakistani side, led by the additional secretary, Riaz Muhammad
Khan, elaborated upon the efforts being made for stabilising the
security situation with reference to nuclearization in South Asia.
He, in this context, underlined the importance of resolving the
core issue of Jammu and Kashmir.-APP
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990408
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World Bank to provide $400m aid to Punjab
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Correspondent
RAWALPINDI, April 7: The World Bank (WB) will provide financial
assistance of $400 million to the Punjab government for the
improvement of health facilities in the province.
This was disclosed by the Punjab health minister, Raja Ashfaq
Sarwar, and Punjab's health secretary in a joint press conference,
held at the Punjab House.
The minister said the WB would provide the huge amount to the
province within a period of 12 years, and the provincial government
had chalked out a comprehensive plan to rectify the present health
system with a view to provide better medical facilities to the
masses.
He said the provincial government had introduced a system of
District Health Government (DHG) in the province and initially 10
different districts would enjoy such status. Out of 10 districts,
all four districts of Rawalpindi division would have a DHG, he
added.
He said to eradicate any sort of corruption and negligence, the
provincial government was giving autonomous status to the
government hospitals and this step had brought positive change in
the performance of these hospitals.
He said the Holy Family Hospital (HFH) had been granted autonomous
status while two other hospitals of Rawalpindi, including the
Rawalpindi General Hospital and the District Headquarter Hospital,
would be given autonomy shortly.
In the first phase, some four government hospitals were given
autonomy which included HFH in Rawalpindi, the Lahore General
Hospital, the Punjab Institute of Cardiology, the Rawalpindi
Medical College and the Allama Iqbal Medical College.
Responding to a question, he said six new drug courts were being
established at different divisions.
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990407
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Talks on power sale to India deadlocked
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NEW DELHI, April 6: Negotiations on a cross-border electricity deal
between Pakistan and India are deadlocked over price, officials at
India's central transmission utility, the Power Grid Corp, said on
Tuesday.
In February, Pakistan had agreed to supply 300 megawatts of
electric power daily to India for the next 10 years, with tariff
and other commercial terms to be decided by both countries.
"In the long run, we may have increased our demand to 1,000-
megawatts," said an official of Power Grid Corp.
"But we have not been able to settle on the tariff by mutual
negotiations. At the moment things are deadlocked with Pakistan
sticking to its high seller's price."
According to Indian power ministry officials, Pakistan was asking
for seven US cents (just over three rupees) for one unit of power,
while India's best offer was just three cents (Rs 1.30).
"Pakistan wants us to foot the bill for the fixed costs, but since
it is not generating the power for India and giving us its surplus,
it is fair that we pay only variable costs," said a Power Grid Corp
official.
India is facing an acute power shortage. It has a peak demand of
around 68,000 megawatts and a generating capacity of 81,000
megawatts. Some 60 percent of generation is wasted due to plant and
transmission losses.
Power Grid Corp has been buying 65 megawatts of power daily from
Bhutan at subsidized rates.-AFP
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990405
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Group visa for Indian visits soon: envoy
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Bureau Report
PESHAWAR April 4: Underlining the need of extension of bilateral
relations between the two countries the high commissioner of India
G. Parthasarti hinted on Sunday of introducing group visa system in
next couple of months to further ease travelling of both citizens
to see each others places of historical importance.
In an informal chat with newsmen on the occasion of the day-long
visit of foreign envoys to the historical Khyber pass through
Safari steam train, told a questioner that there was no restriction
on travelling of journalists to his country. He however hastened to
add that visit to Indian held Kashmir depends on circumstances
prevalent in the valley.
Commenting on his visit to the historic Khyber pass, the Indian
envoy described it fascinating, informative and fruitful, for, he
had had a chance to see this place first time in his life.
Responding to a question, the Indian envoy told that his country
had already recognised the tourist visa and a group visa system is
being introduced under the same scheme of things. Under this
scheme, he said those desirous of visiting in groups will be
provided other facilities including visa.
In response to another question, he said the Indians were equally
desirous of paying visit to Pakistan and they should be provided an
opportunity to that end.
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990408
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Sindh to introduce new farm tax system
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Sabihuddin Ghausi
KARACHI, April 7: The Sindh government has expressed its inability
to harmonize its agricultural related taxes collection system on
the lines proposed by the federal government in 1998 and is instead
going ahead in direction of enforcing a new system based on
production index units.
The existing agricultural income tax system was introduced by the
set-up that was thrown up by the February 1997 elections and is
based on cultivated areas for which there are different rates for
different crops and fruit orchards.
Under the proposed new system, farmers will be served with a demand
notice from the Board of Revenue for a tax that will represent levy
on their land holdings, land revenue, usher and all local cesses.
Tax collectors are looking for a recovery of Rs 1.6 billion in case
the government decides to enforce it from the next fiscal year in
place of Agricultural Income Tax (Amendment) Ordinance 1997.
The farmers will pay these bills in the banks. The new system will
eliminate the role of patwaris and district and tehsil level
revenue collectors who under the present system make assessment of
the crop and serve demand notices on farmers as well as collect tax
from them.
For this purpose the agricultural land in the province has been
divided into four distinct slabs or categories. The first slab of
agricultural land will have a rate of Rs 8 per production index
unit. This category comes under the area commanded by barrages and
is considered the prime quality agricultural land in the province
in terms of water availability, soil chemistry, productivity and
other features.
According to tax collectors, this category is spread over 6 million
acres in the province and will generate anywhere up to Rs 1
billion.
The rate of tax on second category of land is Rs 5 per PIU and it
is spread over 3.5 million acres. Farmers holding this category of
land are expected to give a revenue of Rs 350 million in a year.
On the third slab, spread over about two million acres, the
government plan to levy tax at the rate of Rs 3 per PIU and hope to
recover Rs 130 million.
The fourth slab of agricultural land is obviously much less
productive than the first three slabs is spread over 1.5 million
acres on which the government is considering to enforce tax at the
rate of one rupee per PIU and hope to recover Rs 30 million.
Then there are kutcha area, barani area and those enclaves of
agricultural land which are fed by tubewells. The government assess
the tubewell irrigated area slightly less than half a million acres
and is proposing a tax of Rs 4 per PIU.
The same rate of Rs 4 per PIU has been proposed for the kutcha area
which is the land that gets inundated during the floods but is
available for wheat sowing after the water recedes and is
considered to be most fertile. For the barani or rain fed area, the
government is considering to recover tax at the rate of Rs 2 per
PIU.
Under the new system, there is no exemption from tax payment except
when the crop is damaged by breach of canal, floods, fire or any
accident.
Revenue experts term the new system of tax collection from farmers
as a capacity tax rather than a tax on income. "This system spares
farmers from disclosing their income from agricultural sources," a
leading income tax practitioner said.
Syed Qamaruzzaman Shah, a leading spokesman of the farmers in Sindh
and a former PPP Senator concedes that the new system is based on
capacity collection rather than on the income. "But how can you
expect farmers to maintain accounts and do book keeping when
traders in urban areas are not doing so," he said.
Farmers leaders contend that till the time the country attains a
universal literacy and all financial transactions are documented
there is no way giving up revenue generation by way of capacity or
on presumptive and from withholding. "Bulk of the so called income
tax is obtained from presumptive and withholding regime," Syed
Qamaruzzaman Shah said.
The 1998-99 budget document of Sindh projects recovery of Rs 600
million agricultural income tax, Rs 130 million land revenue, Rs
101.32 million cotton cess.
Tax officials indicate a collection of Rs 645 million collection so
far in respect of all these taxes and hope to recover Rs 450
million from rabi crops.
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990409
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Govt starts issuing 100-page passports
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ISLAMABAD, April 8: The government has started issuing 100-page
passports simultaneously from Islamabad and its missions abroad,
which would prove beneficial to the business community, sources in
the Immigration Department told APP on Thursday.
The Acting Director General of Passports said the 100-page
passports were being issued from Islamabad, Washington, London,
Jeddah and Abu Dhabi.
He said the step had been taken to provide better travelling
facilities to the people who frequently visit Pakistan and travel
abroad.
Narrating the procedure for issuing such passports, Mr Mukhtar
Ahmed said that in the country these passports were being issued
from Islamabad in the country at present and all applications being
received from different parts of the country were sent to the main
office.
The DG said that the normal fees for the passport was Rs7500 and
the people needing an urgent passport would have to deposit
Rs15,000 as double fees.
After fulfilling the set procedure, he said, the passport was
issued to the applicants and the same procedure was being adopted
which was already in practice to avoid any extra fatigue.
Pakistanis living abroad applied for these passports at the
missions there and after due process they were issued passports, he
said.
Mr Mukhtar said that at present due to lack of passport machines at
Pakistani missions abroad, the facility had been provided only in
Washington, London, Jeddah and Abu Dhabi and the network would be
extended to other countries as well in near future after the
machines were installed there.
He said the response of Pakistani nationals in the country and
abroad was encouraging as they thought it a positive step which
would help boost business activities.
He was of the view that issuance of the 100-page passport would
also help frequent visitors and the business community to further
expand their trade and business network.-APP
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990410
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Case based on surmises: Benazir's counsel
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Bureau Report
ISLAMABAD, April 9: Allegations of abetment against the opposition
leader, Benazir Bhutto, for awarding the pre-shipment inspection
contract to a Swiss company, SGS, are not supported by direct
evidence and the case of the prosecution is based only on surmises
and conjectures, Ms Bhutto's counsel argued on Friday.
The special public prosecutor (SPP), Ali Sabtain Fazli, concluded
his submissions, at 10:30am on Friday, before the Ehtesab Bench in
the ehtesab reference No 30. Asif Ali Zardari had asked the court
to adjourn its proceedings as senior counsel Abdul Hafeez Pirzada
was supposed to have opened the argument. The court did not accept
the request. The court, comprising Justice Malik Qayyum and Justice
Najmul Hasan Kazmi, rose for half an hour after directing the
defence counsels to start their arguments at 11:00am.
As the proceedings resumed, Babar Awan started his arguments by
saying that the prosecution's case was based on haphazard
circumstantial evidence and not on direct evidence. He contended
that it was established principle of law that if a case was based
on circumstantial evidence, the chain of evidence should not break
at any stage. "In this case (the) chain breaks at every stage and
the benefit of doubt should go in favour of the accused," the
counsel argued.
To the allegation, that Ms Bhutto misused her official position as
prime minister by awarding the pre-shipment inspection contract to
SGS, no illegality had been committed, the counsel argued further.
Regarding the allegation that illegal gratification was received by
the former prime minister, the counsel said the prosecution had
brought forward no evidence whatsoever. "The case is based on
surmises, conjectures and inference is drawn that she being the
prime minister obtained illegal gratification."
The defence counsel stated that the sitting prime minister (Nawaz
Sharif) had admitted that his decision to freeze foreign currency
accounts (FCA's) was wrong. The admission was witnessed by millions
of people on television. The decision to freeze the FCAs have
brought the stock markets down, and eaten up billions of rupees.
"Why no case has been registered against the sitting prime
minister," the counsel argued.
The defence counsel contended that Jens Schlegelmilch, an alleged
front man of Asif Ali Zardari, had never come to Pakistan and the
statement that he used to be the special guest of the former prime
minister was wrong.
The counsel further stated that the government had made no effort
to ensure the presence of the Jens Schlegelmilch for recording his
statement. Both the investigative officers in the Ehtesab Reference
No 30 had admitted in their statements that they never attempted to
record the statement of the alleged front man.
The prosecution was in such haste that they even did not provide
any opportunity to the accused for clearing their positions. Asif
Zardari was never contacted for getting his version, the counsel
said.
The defence council said Benazir Bhutto was never interested in the
pre-shipment inspection scheme and had attended only one meeting
regarding it. The evidence of those officers, who had been
suspended on corruption charges, was biased and could not be relied
upon.
Referring to the evidence of Saqlain Shah, a police inspector
posted at the gate of the prime minister secretariat at that time,
the defence counsel said he (Mr Shah) had stated that someone by
the name Mr Shaken came to see Asif Zardari. The prosecution was
assuming Mr Shaken to be Jens Schlegelmilch.
Earlier, the special public prosecutor contended that proceedings
conducted by the Swiss judge, Daniel Devud, were judicial
proceedings. As under Swiss Law the investigation magistrate
enjoyed judicial powers.
With regard to sending the commission to Switzerland for verifying
the documents, the special prosecutor stated the commission was
given only a ten-day period to visit Switzerland and submit its
report. He said that he defence was informed about the commission
on the very first day the court constituted it.
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990408
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Draft law prepared to give legal cover to Khidmat bodies
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ISLAMABAD, April 7: The government has prepared a draft law to
provide legal cover to the khidmat committees, and empower them to
investigate in cases of corrupt practices.
This was stated by Maj Gen (Retd) Sikander Hayat, chairman Prime
Minister's monitoring and evaluation cell while talking to APP here
on Wednesday.
He said, Prime Minister Nawaz Sharif had constituted a committee
headed by parliamentary secretary Syed Zafar Ali Shah to suggest
legal framework for strengthening the role of the khidmat
committees.
The committee, he added has done its job and now the draft law is
at the final stage, for seeking approval of the Federal Cabinet.
He said that after the approval from Cabinet "khidmat committees"
ordinance would be promulgated by the President.
The proposed law, Sikander said would empower the khidmat
committees to raid, investigate the matters of corruption,
irregularities, causing loss to the national exchequer.
The khidmat committees would also be authorised to obtain and check
the official records.
He said after the enactment of law, the actions and proceedings of
the committees would not be challenged in the court of law.
Although the tenure of the committees would be expired on April 17,
but they have been asked to work till the re- organisation of the
committees, he added.
Sikander said that a proposal to provide financial support to
khidmat committees is also under consideration.
He said that district administration has been asked to take
immediate steps on the reports of khidmat committees.
To a question, he said that corrupt and non-interested members of
the committees have been sacked on the complaints of the general
public.
He said that the sacked members were given a right of hearing on
the complaint and the decision was taken after completing
investigation.
Sikander said that the government is satisfied with the performance
of committees.
The committees have provided relief to a large number of people,
detected ghost schools and other cases of corruption and recovered
huge amount, from the corrupt officials.
He said the Prime Minister has involved general public in the
process of eliminating corruption at the gross root level.
The government, he said, was giving due consideration to the
suggestions and the complaints received from these committees to
achieve the desired results.-APP
===================================================================
BUSINESS & ECONOMY
===================================================================
990410
-------------------------------------------------------------------
Temporary reduction in SLR expected
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, April 9: The State Bank of Pakistan may cut statutory
liquidity ratio (SLR) and cash reserve ratio (CRR) for a short
period to trigger further cuts in lending rates if the government
fails to reduce returns on national saving schemes substantially.
Top bankers told Dawn on Friday a 1-2 per cent cut in SLR/CRR could
not be ruled out under the present scenario. The State Bank has
already slashed its repo rates by 2.5 per cent to 14 per cent
within last one month to prompt banks to cut their lending rates.
Four out of five major banks namely state-run National Bank and
Habib Bank and partly-privatized Allied Bank and Muslim Commercial
Bank have capped their lending rates between 18-19 per cent and
United Bank is likely to follow suit shortly. But the government
and the business community alike want banks to make further cuts in
lending rates. The bankers want cut in national saving scheme rates
to facilitate reduction in lending rates.
Finance Minister Ishaq Dar has indicated that returns on NSS might
be lowered by 2 per cent but this has not been done so far.
"That is where the State Bank could play a role," said a top
banker. "If the government delays reduction in return on NSS or it
cuts the return very marginally the State Bank can slash SLR and
CRR to help banks reduce their lending rates." Slashing of SLR and
CRR currently at 15 and 5 per cent of total deposits of banks would
mean creation of extra liquidity in banking system thereby
facilitating banks to make further cuts in lending rates.
Senior bankers make no secret about the fact that banks would cut
the rates of return on their deposit to make up for present or
future cuts in lending rates. But they are in a fix over how to go
about it unless the government reduces returns on NSS. "If we start
rationalizing our deposit rates without waiting for the government
to cut returns on NSS people would withdraw money from banks and
invest in NSS instead," feared treasurer of a private bank.
Another factor worth considering for the banks before reducing
deposit rates is the possible stability of exchange rates. "If
exchange rates are not stable it would not be wiser on the part of
banks to cut deposit rates drastically because that again might
result in outflows from banking system," said treasurer from
another bank.
Senior bankers say bank depositors currently get an average of
around 12 per cent return on one-year term deposit and 9 per cent
on saving accounts.
They say banks need to cut these rates to 10 and 7 per cent
respectively. But here lies the problem. Reducing return on one
year deposits to 10 per cent would mean that the saver would be
getting only 6.5 per cent after paying 2.5 per cent Zakat and 10
per cent withholding tax whereas the government says inflation is
at 7 per cent.
These bankers say average lending rate in Pakistan currently hovers
around 16 per cent which the government wants to bring down to 14
per cent.
They say the task is hard but could be met if banks are able to cut
their costs in addition to revising downwards the returns on
deposits and the State Bank continues to support their efforts
through such monetary measures as cut in repo rates and SLR and CRR
etc.
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990410
-------------------------------------------------------------------
New trade agreement with EC in May: Leon
-------------------------------------------------------------------
Ihtashamul Haque
ISLAMABAD, April 9: Pakistan and the European Commission will have
a new trade agreement in May, said the visiting vice president of
the Commission, Sir Leon Brittan.
Speaking at a news conference here on Friday, he said that he has
discussed a number of important issues with the top Pakistani
authorities including the signing of the new agreement between the
two sides. He said signing of Third Generation Agreement will be
possible in May 1999 between Pakistan and the European Commission.
He said he had met the prime minister, the finance minister and
State Bank Governor Dr Yaqub and discussed with them the deepening
of trade relations between the two sides.
To a question, he said that the launching of the euro as a single
European currency will greatly benefit the developing countries
including Pakistan. "Pakistan has much to gain by having increased
trade and economic relations with the European Union", he said.
Sir Leon Brittan has come to Pakistan after having visited
Indonesia, Malaysia and India to secure support for a new
multinational trade negotiations to be launched in ministerial
conference being held in Seattle, United States from Nov 30 to Dec
3 this year.
He was of the view that Millennium Round was necessary to stimulate
trade and growth, reduce the risk of protectionism and strengthen
the multilateral trade system.
Answering a question, he said that Pakistan will not lose any thing
by further lowering tariffs. "Protectionist policies are not good
for Pakistan and the EU", he believed.
He told a reporter that a new Millennium Round was necessary to
remove trade barriers. He said time has come to further liberalize
trade relations among the nations.
Sir Leon Brittan pointed out that a stronger Europe will mean a
better market for Pakistan and other developing countries. "The
launching of euro is a win win situation for every country", he
asserted.
Asked whether the EU was also pressuring Pakistan to sign the CTBT,
he said Pakistan government was protecting the national interest
without being pressured. "The government is doing its job over the
issue of CTBT and I do not have to speculate about it", he added.
During his meeting with the finance minister, Dar told him that
although full implementation of existing bilateral commitments was
a concern for all WTO members, yet for most of the developing
countries, it was an issue which influenced their attitude to
further trade liberalization negotiations. "Like all other
developing countries, Pakistan has also encountered with problems
in implementation of Uruguay Round commitments. Where as Pakistan
has positive vision of further trade negotiations, it is imperative
that such efforts do not add to perceived or actual asymmetry in
the balance of benefits between the developed and developing
countries", the finance minister said.
Sir Leon Brittan appreciated the measures adopted by the government
of Pakistan for the revival of the economy, which was affected by
the South East Asian recession and economic crisis and the cut off
economic relations with the Britton Woods institutions after the
nuclear test. He considered the recent adjustments in the exchange
rate mechanism and the reduction of tariff a good step in the right
direction for trade liberalization.
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990408
-------------------------------------------------------------------
Rs700m ST imposed on 18,000 units
-------------------------------------------------------------------
Correspondent
ISLAMABAD, April 7: The Central Board of Revenue has imposed a Rs
700 million sales tax for 1998-99 on 18,000 industrial units in 28
sectors to be paid collectively by manufacturers by enrolling under
a simplified procedure without any audit.
A CBR notification No SRO 458 (I)/99, dated April 6, 1998, says
that the manufacturers who have been paying fixed ST during 1996-
98, would be paying ST for the same items, which are: nuts, bolts
and screws; ceramic sanitary ware; brass water fittings; malamine
crockery; PVC pipes, Aluminium utensils; press and offset printing;
plastic goods; RCC pipes; wire netting; sweetened supari; plastic
bags; corrugated and solid board; marble tiles; agarbatti; plastic
dori and nawar feeta; brass sanitary fittings; sewing thread;
desert coolers; electric and gas appliances; washing machines;
metal containers; electric fans; paints and varnishes; embroidered
goods; brick kilns; and sweets and bakers (confectioners).
The rules announced through this CBR notification for the retailers
are as follows: The rules attached would be called Simplified Sales
Tax Rules, 1999. These shall apply to manufacturers of goods
specified in the schedule to these rules whose annual turnover is
below Rs 1 million. These rules will not be applicable to those
manufacturers who are already operating under the value-added tax
system.
These rules shall come into force at once and unless repealed
earlier, shall remain in force during the financial year 1998-99.
The manufacturers shall pay 25 per cent additional amount for the
first five months and 50 per cent additional amount for the
remaining seven months of the financial year 1998-99 as compared
with the amount paid by them during the financial year 1997-98.
These manufacturers shall file monthly sales tax return cum-
challans under the normal VAT mode. The manufacturers already
operating under normal VAT system shall not be allowed to opt under
these rules.
The manufacturers already availing any concession on remission of
exemption of customs duty or sales tax on the import of raw
materials under any notification opposing form 'S' and/or survey
certificate from CBR shall not be allowed to opt under these rules.
The manufacturers shall not be entitled to issue tax invoices.
The manufacturers shall not be entitled to sell their goods to
government departments and to institutions deduction advances
Income Tax under Section SO (4) of the Income Tax Ordinance, 1979
and other institutions which are legally bound to make their
purchase from registered persons.
The Anjuman shall be responsible to enlist 9011 manufacturing units
which were paying sales tax during the financial year 1997-98. The
Anjuman and FAST in coordination with the department shall further
enlist about 9000 unregistered manufacturing unit.
It shall be the responsibility of the Anjuman or FAST to ensure the
enrolment of all these units (total about 18,000) with sales tax
department and ensure timely payment of ST dues.
The estimated revenue from these units is approximately Rs 700
million and the Anjuman and FAST shall be responsible for
collection of the amount by June 30, 1999, in coordination with the
department.
The manufacturer failing to discharge its revenue obligations under
this agreement shall be liable to proceedings under the Act for
recovery of the principal tax, additional tax, penalty and, as the
case may be, including prosecution under the relevant laws. In case
of failure the department may proceed against such manufacturers
under the law.
There shall be no audit of manufacturing units enrolled under these
rules. Declaration made under these rules shall not be used for
Income Tax, and there shall be no visit from the ST department
staff. The liability of sales tax for newly enrolled manufacturers
shall be ascertained on the basis of tax rates as per the relevant
notifications issued for the year 1997-98 at indexed rates and
additional tax as agreed.
The implementation methods are as under: The Anjuman and the FAST
shall provide a list of 9011 units claimed by the Anjuman to have
been operational during the financial year 1997-98 and shall also
provide fresh list of about 9000 new units who are not paying ST in
any form. Fresh joint surveys shall be conducted by the staff of
the collectorate and the nominated representatives of the Anjuman
or FAST to unearth the un-registered units for enrolment under
these rules.
The joint survey teams shall be responsible for timely payment.
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990409
-------------------------------------------------------------------
Pakistan to achieve only 3% GDP growth
-------------------------------------------------------------------
Correspondent
WASHINGTON, April 8: Pakistan's growth rate in 1998-99 is expected
to reach barely three per cent instead of the targeted six per
cent, the World Bank said in a global report released here on
Wednesday.
But, it said, Pakistan is getting back on track after narrowly
averting default on its nearly 30 billion dollar external debt.
The report, Global Development Finance, 1999, said Pakistan exports
may drop by 12 per cent and against the budget deficit target of
4.3 per cent, "the fiscal situation remains fragile."
It said foreign direct investment (FDI) increased slightly in other
South Asian countries but fell by $100 million in Pakistan,
totalling just under 500 million dollars.
Compared to Pakistan, the Indian economy was projected by the
report to touch a GDP growth in 1999-2000 of 4.8 per cent, based on
a rebound in fixed capital formation and an acceleration in
industrial production.
It recalled that GDP in Pakistan rose by 5.4 per cent and inflation
decelerated to less than eight per cent in 1997-98. "Increased
political uncertainty, falling prices of cotton and lower textiles
sales resulted in sluggish export growth."
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990410
-------------------------------------------------------------------
Govt to offload 30pc of its shares in oil & gas sector
-------------------------------------------------------------------
Bureau Report
ISLAMABAD, April 9: The government has decided to disinvest 30 per
cent shares of the oil and gas sector before the end of this year.
"We have decided to offload 20 to 30 per cent shares of the
petroleum ministry and Pakistan Petroleum Limited (PPL) in
different oil and gas fields", said Privatization Commission
Chairman Khawaja Muhammad Asif.
Talking to reporters here on Friday he said that the ministry and
the PPL were having joint ventures with many local and foreign
companies. "And as a first step the prime minister has given his
tentative approval to start the privatization of oil and gas sector
by selling the government shares in private companies", he added.
He said the prime minister had constituted a special committee to
finalize modalities for the privatization of the oil and gas
sector. The committee has formulated its recommendations to be
discussed on Saturday by the privatization board, headed by the
prime minister", Asif said.
He agreed with a reporter that the whole (oil and gas) sector could
offer $14 to $15 billion after its privatization. "Our country
could get rid of its huge foreign debt once this potential sector
is privatized".
Asked how would the PC disinvest around 30 per cent shares of oil
and gas sector within this year keeping in view the slow pace of
the privatization, he said the most important thing was that this
sector did not have any problem of tariff. There was no proposal to
increase the prices of oil and gas therefore, its privatization
would not be a difficult job, he added.
"We are finalizing a new strategy about the selling of the oil and
gas sector so that the consumers should not have any problem", he
said when asked whether the issue could further burden the
consumers with an increased tariffs.
He said the details of partially privatizing the oil and gas sector
would be made public through a press briefing on Saturday.
Mr Asif said that the government had decided to privatize PTCL,
KESC, Habib Bank, United Bank, PIA's ground handling and courier
services and flight kitchen before the end of 1999.
He said 25 per cent shares of the Muslim Commercial Bank and the
remaining shares of the Allied Bank would also be offloaded within
this year.
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990409
-------------------------------------------------------------------
Conditional raise in Wapda tariff notified
-------------------------------------------------------------------
Faraz Hashmi
ISLAMABAD, April 8: WAPDA's second revised petition seeking an
average increase of 9.43 per cent has been notified by National
Electric Power Regulatory Authority (NEPRA), on the condition that
the petitioner would have to justify the increase in the public
hearing commencing from April 17.
In case WAPDA failed to justify the increase then it would have to
refund to the consumers the amount charged under the new tariffs,
which had already been enforced from April 1, 1999, NEPRA Chairman
Javed Akhter told a press conference on Thursday.
Javed giving a briefing on functioning of NEPRA justified the
notification of second-revised petition of WAPDA prior to the
public hearing by saying that it was closer to the earlier
petition.
There was not much change in the second revised petition therefore
NEPRA approved it but imposed a condition of refund in case of its
rejection, the chairman said.
He said that NEPRA tariffs rules which were approved by the
parliament had a provision for issuing a conditional notification.
In the second-revised petition, WAPDA had stated that the downward
revision of the tariffs would not be in conformity with its
covenants with the international donors - IMF and World Bank.
However, the thrust of the revised and second-revised petition was
on the industrial consumers who had been switching over to self-
generation.
In the second-revised petition, WAPDA had projected to increase
17.5 per cent consumption in industrial sector by making the
tariffs more attractive.
A chart circulated at the briefing, showing comparative increase in
the tariffs indicated that the average tariffs has been revised
from Rs 3.18 per KWH to Rs 3.48 per KWH.
WAPDA had earlier announced to decrease the tariffs withdrawing its
petition of an increase of 11 per cent on a presumption that the
government would allow rescheduling of its loans to cover a deficit
of Rs 15.377 billion.
The government, however, turned the WAPDA's request for the
rescheduling. "During the hearing the petitioner had stated that
the cash deficit of Rs 10.288 billion would be met through
rescheduling of its liabilities which included the debts owed to
the government," NEPRA notification said.
In the second revised petition, WAPDA stated that "contrary to its
expectations, its cash deficit is now being met partly through the
rescheduling of its liabilities, leaving a deficit of Rs 5.22
billion for the test year 1999, which it would recover through
further increase over and about the tariff revised petition.
All these issues including the raise sought by WAPDA for generating
an additional Rs 5.22 billion would be examined at the hearing,
Javed Akhter said.
WAPDA would also have to satisfy NEPRA that it could meet its
entire cash deficit of Rs 10.28 billion under the revised petition
through non-tariff measures.
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990409
-------------------------------------------------------------------
Jewellers with turnover below Rs4m exempted
-------------------------------------------------------------------
Correspondent
ISLAMABAD, April 8: The Central Board of Revenue has announced that
jewellers and gold retailers with annual turnover below Rs 4
million will not have to pay Trade Enrolment Certificate fee under
the scheme announced for retailers on Wednesday.
Through Circular No 1, 1999, issued here on Thursday, the CBR has
also announced mode and modalities for collection of enrolment fee.
For jewellers and gold retailers, the circular says: Jewellers and
gold retailers shall not be eligible for categorisation under the
scheme.
These two kind of TEF-paying retailers with turnover of any amount
not exceeding Rs 4 million shall not be classified as payees.
The mode and modalities for retailers paying TEC fee are as
follows: The return form shall be printed and issued in
quadruplicates, by the Anjumn-Tajiran. Photocopies of the forms can
also be used by retailers for this purpose.
This scheme shall not be applicable in case of persons making
taxable supplies whose annual turnover exceeds Rs 5 million.
The forms shall be supplied/distributed by the regional committees
as agreed under the TEC formula. The City Committee shall keep
market-wise record of issuance of the forms and Market
Committees/banks shall keep the record of issuance of forms to
individual retailers.
The form, duly filled-in and duly verified for categorisation
purposes shall be deposited with the respective market committee
for endorsement after determination of the category. After the
endorsement of category, the retailer shall make payment of the
enrolment fee as per his category in the authorized branch of
National Bank of Pakistan.
The retailer shall deposit the duplicate copy with the respective
market committee and shall display the original at his shop/place
of business as TEC for the year 1998-99.
The receipt of enrolment fee paid by the retailers shall be tallied
by the City Committee with the respective collectorates on weekly
basis. The fee shall be paid in the designated branches of NBP on
or before April 30, 1999.
A retailer, who fails to make payment of fee within the stipulated
time, shall be liable to imposition of penalty equal to 11 times of
fee.
In case of default of the due payment, the City Committee shall
approach the district administration for recovery of the payable
amount including the amount of penalty as the arrears of Land
Revenues.
Appeal against the decision of Market Committee regarding
determination of the category shall be heard by City Commi-ttee
while the second appeal shall be heard by Regional Committee.
A federal committee comprising Mian Abdul Manan, MNA, Haji Maqsood
Butt, MPA, the chairman and president AT, respectively, two
representatives of FPCCI, chief ST, secretary RT CBR, to supervise
the whole exercise.
All the retailers falling in the respective categories shall be
required to fulfil their obligations by April 30, 1999, failing
which stringent penal action will be initiated immediately after
that date.
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990406
-------------------------------------------------------------------
Only 41% of ADP funds utilized in 9 months
-------------------------------------------------------------------
Shaukat Ali
LAHORE, April 5: The Punjab government has warned to take strict
action against heads of various departments which have not been
showing satisfactory results in the utilization of the Annual
Development Programme funds for the present fiscal.
The ADP utilization has been awfully low at around 41 per cent by
the close of the third quarter of the financial year - almost 20
per cent less than what the government had expected at the start of
the year 1998-99 in June last year.
Informed sources told Dawn here on Monday that the government had
threatened to transfer head of departments whom development funds
remain un-utilized by June this year.
The government is also considering a proposal to check promotion of
officials who show inefficiency in spending the available money for
development.
The province has already cut overall size of its ADP for the
present fiscal by around Rs 2 billion in the wake of low revenues
collection at the federal level during the ongoing financial year.
"It will be a matter of great discredit if the remaining about Rs
15 billion are not utilized by June this year in the province which
pressingly needs money for its development sector.
The under utilization will also weaken the province's claim on
increased size of development funds for the next fiscal", sources
quoted Punjab Chief Minister Shahbaz Sharif as telling a high level
meeting held here recently.
The social sector departments like health and education have hardly
utilized around 40 per cent of their ADP so far. The health
department, which was supposed to spend about Rs 1.45 billion this
financial year was barely near to the mark of Rs 690 million in
spending on its various ongoing and new schemes including the ones
belonging to the Social Action Programme.
The education department was able to utilize about Rs 1.24 billion
out of a total outlay of around Rs 2.57 billion by the end of third
quarter of the fiscal 1998-99. But, according to sources, worst
were the departments of agriculture and irrigation where the ADP
utilization was still less than 35 per cent.
The farm-to-market roads' scheme for which the government had
provided Rs 1 billion is far from completion as the department
could spend just about Rs 345 million in the first three quarters
of the year.
The fate of rural development programme for which the government
had promised to make available Rs 2 billion is not any different.
Sources said funds utilization in this area was dreadfully low at
30 per cent of the amount earmarked for this purpose in June last
year.
"The Punjab chief minister has asked for making a complete report
on ADP utilization in the three quarters of fiscal 1998-99. It
appears as an action against officials showing lethargy in
development funds' utilization may be taken before the end of the
financial year", sources quoted officials of the chief minister
secretariat as saying.
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990407
-------------------------------------------------------------------
Premiums on forward sale of $ fall sharply
-------------------------------------------------------------------
Mohiuddin Aazim
KARACHI, April 6: Premiums on forward sale of dollars fell to
record low of 1.60 per cent for three months and 0.40 per cent for
six months in inter-bank market on Tuesday.
Senior bankers said forward booking of dollars by importers had
been sluggish for the last few weeks resulting in a consistent fall
of forward premiums.
"Forward counters now present a deserted look," said treasury
manager of a state-run bank adding that most importers had rather
grown optimistic about future strength of the rupee.
He said the greenback was traded in inter-bank market at Rs 50.35-
5.65 on Tuesday on ready counters adding that three-month and six-
month forward prices were quoted at Rs 51.35 and Rs 51.65
respectively.
Does this mean importers see no devaluation around the corner?
"That is what it seems to be," said a polypropylene importer and
chairman of Pakistan Polypropylene Woven Sack Manufacturers
Association Sardar Mohammad Ashraf. "People apparently believe that
the rupee may remain stable at least up to June. That is why
forward demand for dollars is falling."
Finance Minister Ishaq Dar has said on several occasions that the
government would not devalue the rupee during this fiscal year. "It
seems importers believe him," said a plastic importer.
"There is another reason for the importers staying away from
booking foreign exchange...and that relates to their liquidity
problems," said another importer adding that a slump in markets had
hit cash-flow at import houses.
But bankers as well as importers believe that the recent cut in
import tariffs would lead to a growth in imports and ongoing cuts
in lending rates may encourage industries to consume larger
imports. "But this is a long process," said a bank treasurer.
Some bankers say the ministry of finance and the State Bank may
take certain measures to force greenbacks further down in the
inter-bank market before going for unification of exchange rates.
Leading importers who share this view cite it as a big reason for
the fall in forward demand for dollars. They believe that the
government has to push the dollar further down before withdrawing
foreign exchange rate subsidy on import of wheat and petroleum
products. Senior bankers say the subsidy might go any time before
June 1999.
Whereas importers feel much comfortable now after substantial fall
in both ready and forward rates of greenbacks it continues to pinch
the exporters whose export earnings in terms of rupees are falling.
But something else is going to compensate them for this-that is a
gradual fall in bank lending rates.
They say overnight and term repo rates have started falling adding
that call rates now range somewhere between 13-14 per cent and repo
rates for one, two and three months at 9.90-10.10 per cent, 9.25-
9.65 per cent and 9.20-9.50 per cent respectively.
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990410
-------------------------------------------------------------------
Share index loses 13 points on heavy selling
-------------------------------------------------------------------
Reporter
KARACHI, April 9: Stocks on Friday finished with an extended fall
as fresh heavy selling in most of the pivotals by both local and
foreign investors kept consolidation forces miles away for the
second session in a row. The KSE 100-share index was off 13.15
points.
There was no apparent pressing bearish reason behind the current
sell-off barring fresh unloading by a leading foreign fund in
selected MNCs and its negative impact on the other pivotals in the
form of sympathetic profit-taking.
"The market has fallen beyond its near-term mandate and corrective
forces must be at work when the trading resume next week", hoped an
analyst.
He said the news from the economic front, notably the export and
revenue front might not be that encouraging but they are "too bad
either".
Some others said the current strength of the rupee despite news of
fall in exports and the downward revision of the export target to
$8.2 billion reflects that the economic outlook was not that bleak.
The KSE 100-share index suffered a fresh decline of 13.15 points at
1,021.84 as compared to 1,034.99 a day earlier, reflecting the
weakness of leading base shares.
The market capitalization also fell to Rs283.247 billion from
Rs286.262 billion a day earlier owing to heavy selling in mega
issues such as PTCL and Hub-Power.
It was largely the weakness of the Hub-Power and PTCL, which took
the entire market along with it in the minus column contrary to
predictions of a rebound on technical grounds, analysts said.
Apart from weekend considerations, the other negative factor the
absence of foreign investors most of them indulged in fresh selling
rather than covering positions at the lower levels, they added.
"The conflicting reports about the settlement of the IPP issue
continue to keep the market unsettled and until it is settled
foreign investors might stay away", said a leading floor broker.
He said some of the local bank and institutional traders are try to
restore consistency to the trading pattern but heavy selling by
some of the foreign funds in pivotals did not allow any positive
change in the market psychology.
Trading volume fell to 77 million shares from the previous 105
million shares as losers maintained a strong lead over the gainers
at 28 to 72, with 48 shares holding on to the last levels.
The most active list was topped by Hub-Power off 25 paisa at
Rs16.05 on 32 million shares followed by PTCL lower 45 paisa at
Rs17.15 on 21 million shares, Fauji Fertiliser lower 35 paisa at
Rs52.85 on 7 million shares; ICI Pakistan up 10 paisa at Rs9.45 on
4 million shares and Dewan Salman off 30 paisa at Rs23.65 on 3
million shares.
The other actively traded shares were led by Engro Chemical off
Rs1.90 on 2.113 million shares; followed by MCB easy by 75 paisa on
1.398 million shares; FFC-Jordan Fertiliser lower 30 paisa on 0.904
million shares; Telecard easy 25 paisa on 0.987 million shares;
KESC down 25 paisa on 0.847 million shares and Dhan Fibre lower 20
paisa on 0.632 million shares.
Defaulting companies: Shares of five companies came in for active
bouts of buying and selling but finally ended mixed. The largest
turnover of 5,500 shares was recorded in Allied Motors followed by
Suzuki Motors, which ended unchanged on 3,000 shares.
The biggest decline of Rs1.50 was noted in Norrie Textiles, which
fell by Rs1.50 on 500 shares, while others were traded fractionally
lower to unchanged.
Back to the top
===================================================================
EDITORIALS & FEATURES
===================================================================
990404
-------------------------------------------------------------------
Wise counsel
-------------------------------------------------------------------
Ardeshir Cowasjee
IT WAS in 1956, forty-three years ago, that I first met Henry
Brandon, barrister, who had flown out from London to Karachi to
represent us at a marine enquiry. Last week, on March 24, he died
as Lord Brandon of Oakbrook, a great loss of a true friend.
Pakistan, in 1956, was endeavouring to become a maritime nation.
Though we have a coastline extending over almost 1,000 kilometers
and a land mass which has traditionally bred sea-going men in
abundance, shipping was (and still is) largely neglected. In those
days, shipping affairs were irreverently controlled by the ministry
of commerce, by men who had no love for the sea, for ships or for
the men who sail in them. The commerce secretary was the inflexible
Aziz Ahmed.
Our junior counsel, Dorab Patel, who had recently returned from
England having done his Bar, came to us just before the enquiry was
to begin and announced in his inimitable relaxed drawl, "Aziz is
stupid. He has appointed the Public Prosecutor to represent the
Government at the enquiry, a man totally unfamiliar with shipping
law, who is bound to conduct the enquiry as he conducts a
prosecution. Strange people we deal with, most strange. It would be
wise to send for a lawyer who practises at the Admiralty Bar in
London." And so we found Henry Brandon.
He was here for three weeks, during which we practically lived
together. We became fast friends, and I a staunch admirer of his
outstanding legal and academic abilities. Henry had come to a
strange country, to be confronted by strange hostile men with no
idea of what was involved in a marine enquiry. Every ten minutes,
Henry had to remind the enquiry panel that it was an 'enquiry' they
were conducting, not a prosecution. The amazing thing is that the
minute he arose, he was in complete command. He took to the strange
situation as a duck to water. He did his best to inform the panel
as to how marine enquiries are handled and after much effort
succeeded to a large extent.
The ineptitude of the government side was illustrated by the
performance of the man they had carefully kept under wraps, to be
sprung at the right moment as their star witness. They proudly
produced a certain Captain Simpson, a man who had written a letter
to us demanding a payment of Rs.50,000 and the guarantee of a
continued monthly payment of that amount. If we did not agree, he
threatened to appear as a hostile witness, and he did.
Henry asked him whether he had indeed written such a letter. "Yes,"
he admitted boastfully. "Are you the same man who sailed in one of
the Cowasjee ships, swallowed half a bottle of phenobarbitone, and
for whom, to save your life, the ship had to be diverted to
Vizagapatam so that you could be hospitalized?" "Wrong," shouted
Simpson, announcing triumphantly, "I swallowed a full bottle." We
kept in touch, not only as friends but professionally, as Henry
thereafter handled many of our arbitration and salvage cases in
Britain.
Henry Vivian Brandon, born in 1920 to Captain V. R. Brandon of the
Royal Navy, was a scholar of Winchester and of King's College,
Cambridge. He once told me how, when a boy leaves Winchester
(founded in 1382 by Bishop William of Wykeham), he is instructed :
"You are going out into the big cruel world, try and change it;"
whereas a boy leaving Eton College (founded in 1440 by Henry VI of
England) is advised : "You are going out into the big cruel world,
live in it." Two rival philosophies. Eton has produced many British
prime ministers, Winchester so far none - one Wykehamist who nearly
made it was Hugh Gaitskell. Henry's youngest son, William, also a
scholar at Winchester, has his father's sense of humour - from a
letter written to me in 1997 : "Following your admonition to me (in
1992, I think) to get a proper job, I joined the Foreign Office in
1993. So I clearly disobeyed your orders . . . !"
Henry read classics at Cambridge, but was interrupted by World War
II and commissioned in the Royal Artillery. Posted first to
Madagascar, he was awarded an MC for directing his regiment's fire
by radio from a motorcycle he rode deep behind Vichy French lines.
He later served in India and Burma, ending the war as a major. He
returned to Cambridge, switched to law, graduated with a first in
1946, and was called to the Bar by the Inner Temple. His practice
in the main lay on the physical side of shipping - marine
casualties such as collisions, wreck enquiries and salvage
disputes, Lloyds salvage arbitrations being a sizable bread earner.
He took Silk in 1961, was knighted in 1966 and at the unprecedented
early age of 46 (becoming the second youngest high court judge) was
assigned to the Probate, Divorce and Admiralty Divisions. In 1978
he was sworn in to the Privy Council and promoted to the Court of
Appeal, and in 1981 to the House of Lords, taking the title Lord
Brandon of Oakbrook. He was known as one of the most industrious
and respected of the nine members of the Judicial Committee, again
and again giving the leading judgment in every field of law.
We saw a lot of each other when he was a high court judge, as
during those years I spent much time in London. Henry used to take
me to tea at a quaint little tea house, opposite the Law Courts,
where he introduced me to Lapsang Souchong and to a whole range of
exotic teas which I had never sampled. He could discourse at ease
and with humour on any subject - brewing tea, an astronaut's
agility on the moon, Latin poets, Greek playwrights and the
idiosyncrasies, often sanctimonious, of the British. And he had
tales to tell of some of the stranger divorce cases that came his
way. A man may be a mouse in the witness box and a lion outside, he
commented. He held that human beings are "frail things" who tend to
act at odds with their scruples.
Only occasionally did he hit the headlines, as he did in 1987, when
with two of his brother law lords he voted in favour of continuing
the British government's controversial ban on newspapers printing
extracts from 'Spycatcher,' the book written by former MI5 officer
Peter Wright. At the same time, expressing his support for the
principle of a free press, he accused the attorney general of
trying "to impose the kind of censorship the Soviet government
imposes." The damage already done to the British security service
could not be undone, he contended, but perhaps the courts could
still take useful steps to reduce the possibility of similar damage
being done again in the future. This decision brought the press to
boiling point. The 'Daily Mirror' printed upside-down pictures of
the three law lords who had voted to continue the ban, with the
caption "You fools."
Needless to say, the law lords ignored it all. They held, as had
Lord Salmon (1980 3 WLR 109 at 119) : "I am and have always been
satisfied that no judge would be influenced in his judgment by what
may be said by the media. If he were, he would not be fit to be a
judge." This is more or less what our Supreme Court Justice, Nasir
Aslam Zahid, held during the enquiry into the November 28, 1997,
storming of his court when the attorney general objected to
something that had been printed in this newspaper. "The days are
gone," said Justice Zahid on April 2, 1998, "when judges are not
supposed to read the papers. We all have biases and views, but the
quality of a judge is that in court he must be without bias or
prejudice."
In England, the law lords sit until they are 75 years of age. In
1980 Henry had an operation on his spine which did little to
relieve a neurological condition from which he had long suffered
and borne with great courage. Feeling that he could no longer do
justice on the Bench, he retired at 71.
He was much admired as a judge, and for the quality of his
judgments, but was never a popular judge; he seemed to go out of
his way to avoid courting popularity. He had a reputation for
'never being wrong' and was seldom reversed on appeal. He was the
first judge in 60 years to act as Wreck Commissioner for his
government. A loyal friend, a great intellect with a great sense of
humour, it was my good fortune to have known him. Even after he sat
on the Bench, he would give his advice when sought. He believed
that no law prevents a man from giving wise counsel at any time in
any place.
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990410
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Down the Khyber
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Irfan Husain
THE year 2001 has been designated the "Visit Pakistan Year." For
those expecting a flood of tourists two years from now, my advice
is: "Don't hold your breath."
My column did not appear in this space last week because I was away
in Sri Lanka for a brief holiday over Eid. Despite the ongoing
civil war, the country attracts hundreds of thousands of foreigners
to its shores every year. Its splendid beaches and lush green
mountains are dotted with hotels and resorts to suit every taste
and every pocket. By contrast, our meagre facilities pale into
insignificance.
According to the World Tourism Organization (WTO), the number of
tourists arriving in the rest of South Asia increased by over 4.8
per cent last year; however, the number dropped by a similar
percentage in Pakistan. We are at the bottom of the regional
tourism table, languishing far behind even Nepal and the Maldives.
So when Mushahid Hussain, the tourism minister, says this
government wants to promote tourism, I have no reason not to
believe him, but it will take more than pious wishes to attract
foreigners to our inhospitable country.
Don't get me wrong: we go overboard in extending hospitality to our
guests. But paradoxically, as a people we are gratuitously rude to
total strangers. Many foreigners have complained to me about people
staring at them constantly and accosting them aggressively from
Khyber to Karachi. Women especially are hassled at every turn. By
contrast, outsiders are generally left strictly to themselves in
all the other South Asian countries. Obviously, nobody who has
spent a lot of money wants to be surrounded by pushy crowds while
he or she is on vacation.
The average tourist wants value for money, and this includes
comfortable hotels, familiar food, well-organized tours and a
generally good time. At home, he works hard and saves so that he
and his family can have a holiday abroad that they will remember.
Indeed, the most effective publicity for a country in terms of
tourism is generated by satisfied tourists who talk to their
neighbours, relatives and colleagues about the splendid time they
have just had in country X, Y or Z. Unfortunately, Pakistan does
not make it into this category of vacation destinations.
Let us be honest: if we lived abroad, how many of us would buy a
ticket to visit Pakistan for a holiday when we had the whole world
to choose from? The fact is that we have acquired a very unsavoury
reputation worldwide. Several foreigners have been gunned down and
kidnapped; the country is awash with arms, and scarcely a day
passes without some incident of ethnic or sectarian violence. The
country's name has come to be associated with drug smuggling,
illegal immigrants and a fanatical version of religion.
With such an image, it should surprise nobody that the number of
tourists to Pakistan is declining. Indeed, most people who do come
here are foreigners flying in on short business trips, or
expatriate Pakistanis who have now acquired foreign nationality and
come here to visit their relatives. Genuine tourism is limited to
those hardy souls who have a craving for the high peaks of the
Northern Areas, or history buffs who wish to visit Mughal and
Gandhara sites.
Not surprisingly, not too many people fall into either category,
and therefore Pakistan's share of the tourist traffic to the area
remains minuscule. If we want to tap into the mass tourist trade,
we will have to invest heavily in the infrastructure, apart from
changing attitudes. There is little sign of either happening. Many
foreign visitors ask me for advice on how to spend their evenings
in any of our major cities. I'm afraid I have few suggestions to
offer.
Our cinemas are a shambles, and the movies they show are better
avoided. Public concerts are few and far between. There are very
few good restaurants, and foreigners cannot get a drink. The fact
is that alcohol is a part of everyday life in the West, and
recognizing this, most Muslim countries permit hotels and
restaurants to serve alcoholic beverages to foreigners without
lengthy bureaucratic procedures. But prohibition in Pakistan,
especially in Punjab and the NWFP, is very rigid. So why should
anybody spend money to face all these deprivations?
Another problem foreigners often face is the difficulty in getting
visas for Pakistan. Most large travel agencies in the West obtain
visas for customers for a small service charge. Recently, our High
Commission in the UK has made it mandatory for intending visitors
to come to the visa section in person. The procedure here is so
time-consuming and frustrating that you have to really want to
visit Pakistan to put up with it.
First, you get into one queue to hand in your form; then you stand
in another line to deposit the visa fee in cash - something
considered abnormal in a society where even cinema theatres accept
cheques for tickets. Finally you take the receipt, the form and
your passport to a third official who gives you a token and asks
you to return a few hours later when you wait around sitting on
dirty sofas for your name to be called. None of our senior
diplomats take the time and trouble to see what is happening in the
visa section, leaving it to their minions to spoil Pakistan's image
still further.
But more than the image, it is the reality that deters visitors.
Our Tourism Minister has been quoted recently as stating: "It is
unfortunate that Pakistan suffers from image problem (sic) due to
misconceptions..." Our treatment of minorities and women is not a
misconception, and nor is the sectarian divide in Karachi.
Similarly, our holier-than-thou attitude that grates on so many
nerves, local and foreign, is not a figment of the imagination. The
drugs and arms culture that took root during the Zia era is an
unfortunate but all-too-real fact of life.
At the conclusion of a "Khyber Steam Safari", Mushahid Hussain
apparently got a bit carried away and is quoted as saying that "the
historic Khyber Pass will serve as a gateway of tourism in
Pakistan." I can only presume that he was alluding to the rapid
Talibanization of Pakistan that will attract our hirsute neighbours
to visit us. I cannot imagine too many other tourists coming down
the Khyber to visit Pakistan.
===================================================================
SPORTS
===================================================================
990405
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Pakistan thrash India, lift trophy
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Bureau Report
BANGALORE, April 4: Pakistan inflicted a crushing 123-run defeat
over India in the tri-nation one-day series on Sunday.
Opting to bat first after winning the toss, Pakistan scored 291 for
eight in 50 overs. Main scorers for Pakistan were Inzamam-ul-Haq 91
and Shahid Afridi 65.
India were all out for 168 in 42.1 overs.
Azhar Mahmood with 5/38 was declared man of the match.
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990409
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Invincible Pakistan make India an easy prey
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SHARJAH, United Arab Emirates, April 8: Wasim Akram's Pakistan
showed no mercy on illness-stricken India as they cantered to a
fluent 116-run victory in the Champions Cup here on Thursday.
Inzamam-ul Haq smashed a glorious 107 as the Pakistanis piled up
279-8 in their 50 overs after taking first strike in the day-night
international.
The Indians, who lost five players overnight to viruses, managed
only a pathetic 163-6 in reply to suffer their eighth successive
defeat against the rampant Pakistanis.
Seamer Azhar Mahmood picked up 2-20 from 10 overs to give Pakistan
their second win in the three-nation tournament after the 90-run
romp against England in Wednesday's opening match.
The hopelessly one-sided encounter was marked by just one boundary
from the first five Indian batsmen, as against a flurry of fours
and sixes from the Pakistanis.
The Indians, already missing their injured superstar Sachin
Tendulkar, woke up in the morning to find Vinod Kambli, Amay
Khurasia, Ajit Agarkar, Nayan Mongia and Nikhil Chopra affected by
viral fever.
With just 10 men fit to play, a visibly distraught Mongia was taken
from his sick bed and persuaded to don the wicket-keeping gloves.
Team coach Anshuman Gaekwad said he has asked for replacements to
be flown in for Kambli, Agarkar and Mongia, preferably before the
next match against England on Friday. -AFP
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990408
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Pakistan thrash England by 90 runs in Champions Cup
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SHARJAH, United Arab Emirates, April 7: Hapless England became the
latest victim of Pakistan's awesome firepower as they crashed to a
90-run defeat in the Champions Cup opener here on Wednesday.
Wasim Akram's invincibles, fresh from a resounding tour of India,
rode on a belligerent 137 off 130 balls by Ijaz Ahmed to pile up a
record 323-5 after electing to take first strike.
England, who never had so many runs scored against them in a one-
dayer, were shot out for 233 after the top order caved in against
the lightning speed of Shoaib Akhtar in the day-night match.
Akhtar struck in his first, third and fifth overs to reduce England
to 53-3, before Graeme Hick and new sensation Andrew Flintoff
hammered 94 off 90 balls for the fifth wicket.
The giant Flintoff, who took a century off his team-mates during a
practice match in Pakistan last week, hit four towering sixes and
two fours in his run-a-ball 50.
Hick made 65 as the pair took the score from 91-4 to 185 when off-
spinner Saqlain Mushtaq ended England's resistence by removing both
batsmen in the space of four deliveries.
Pakistan take on India on Thursday looking for their eighth
straight limited-overs win against the arch-rivals.
Ijaz hit 12 boundaries and a six in his 10th one day-century as the
Pakistanis flayed the English attack in good batting conditions at
the Sharjah cricket stadium.
Ijaz put on 86 for the second wicket with Shahid Afridi (41) and
then 145 off just 132 balls for the third with Inzamam-ul Haq, who
made 59.
Moin Khan smashed sixes off the last two balls of the innings,
bowled by Flintoff, to post the highest one-day total by any side
against England.
Pakistan, who scored 98 runs in the last 10 overs, crossed the West
Indian record score of 313-6 against England at St. Vincent in
1994.-AFP
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